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Roadmap To Finding and Selling Deals by Mind Map: Roadmap To Finding and Selling Deals
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Roadmap To Finding and Selling Deals

SUCCESSFUL PEOPLE Open Arms Foundation: Ken Shemin Dr. Robert Shemin Vicky Shemin - Top Divorce lawyer 1,000 Wealthiest African Americans Map on Reality 1. Have specific plan with goals and time. 2. View success as a process. Whatever I think I am right. Making offers Doing deals Making Money All fears are irrational Knowledge is Power Applied Knowledge is growth Knowledge makes money You need: - Business Plan - Systems Portfolio Money - Tax Liens,

Asset Management

Get $2Million Umbrella Policy

Fraudulent Conveyance

Fraudulent Conveyance - Snap a Picture of where you are - Fill out a Financial Statement - Show assets to show it is positive - Take a picture every year. - Open up a corporation or llcense Separate Asset Base - Stocks, property, bonds, - Look up AMERO - Look up Shemin interview on - Financial Crisis - Real Estate will go up Swiss Francs & loose diamonds safest investments. Federal Detention Centers - 40,000 capacity preparation Protect your assets from law suits - Charitable remainder trust - Dynasty trust - Limited Partnership' - Corporations - LLCs - Offshore banking LLCs owned by Limited Partnership = layered protection Free Insurance. - Buying and selling houses. ASK INSURER - Do I have the right insurance? Get their answer in writing.

Evaluate Deal

Get Comps -

Market Trends

Market Trend - Broker Fees. Not only have brokers resisted the attack by the Internet’s real estate sites but their fees remain stable. Real Trends, a research firm, reports the average commission paid to the buying and selling brokers was 5.4 percent of the price of a home in 2011, up from 5 percent in 2008. (The seller’s agent collects the commission from the seller and then splits it evenly with the buyer’s agent.)

Take Snapshot: Due Diligence

Estimate Costs to Sell

Costs While Waiting to Sell:Loan Cost - waiting to sellWaiting for P&S signedInsuranceClosing costsCommissions

How Can I make Money on this Deal?

Determine how you can make money: Wholesale Buy and Flip Buy and Lease

Equity Sharing

Equity Sharing - When seller insists property may sell for more than your projected price, agree to split the additional profit 50/50.

Paperwork

Title Insurance

Homeonwer insurance

Write Simple Offers

Wholesale Contract - Make it assignable

For Home Sellers not familiar with contracts, add: "Agree to purchase and/or assign" - Name of Property - Buyer - Seller - Price - Deposit - How it will be paid for - when I will close 30 day or 40 day contract When you are looking to resell to another wholesaler, get as much as time asap. - Money will be held in escrow.   Contract: Offer, Terms, pricing, competent parties, legal purpoose, written documentation, legal description, consideration Equity-sharing contracts - everything above x amount we split. Addendums - Add your clauses. - not suitable - conditions Closing - Title and fees are negotiable get buyer or seller to pay. HUD & VA - take back houses. When selling.  How much do you have for a non-refundable deposit. Always have lawyers review your contracts.    

Create forms/contracts

CR Source on Wholesale Deals

Network

Good Deals will last for 24 hours

Buyers - Wholesale Deals

Finance

Small Banks Investor Rep

Homebuyer Class Presenter

Property Managers

Find Certified Property Managers

Divorce Lawyers

Policemen

Policemen - Crack Houses - When someone goes to jail and has left behind a house there is an opportunity.

Bail Bondsman

Bail Bondsmen do not want to hold onto property. When Property lien is established for bail, a remedy may be needed.

With Other WholeSalers

Build Team

When Building Team take Kolby Test - Evaluate if you can work together. Working on your business includes establishing SPP for working with your team. We get advice from: Group 1: People who do not know the market Group 2: People who have tried and failed Group 3:Experts who know the real estate mkt.

Lending Sources

17 ways to finance a deal

Realtors w/Investor Contacts

Generate Referrals

Find Private Investors

Refer to your attorney when dealing with other people's money.Offer 7 to 10% return on money: - Family and friends- Business ownersAnswer 4 questions:- How much will I make- How long will you need it- How secure is my money- What are you going to do with it

Contracting Team

When hiring subcontractors Get Proof and verify insurance on subcontractors Make sure they have workers compensation All subcontractors Mold Certified Asbestos Certified I love black mold!! Million dollar Umbrella you and company Odoban - takes out odors Bleach and Odoban, Self-priming paint. Oil over latex not latex over oil Buy scratch, dented appliances

Real Estate Attorneys

Determine Partner Value

Determine Value of Each Partner: - Cash Investment - Work they will perform - Then set a % value for each partner - Put it in writing

Flipping Team Mentors

Title Co. Marketing Consultant

Become Title Co. Mkt Consultant To share their information systems, become a marketing consultant for:- Title Company - Real Estate Company partner Since 90% of title fee is profit. For every deal I bring collect a consulting fee of 25% of title fee

Real Estate Co. Marketing Assoc.

Real Estate Co. - Ask for stock in company for all deals that include realtor. Become a marketing associate for a realty firm.

Mortgage Company Consultant

Become an employee..get paid for bringing in mortgages.

Get your Insurance License

Sell the required property insurance.

Certified Property Management

Finding Deals Not Markets

Find A 45-Day Buyers Market Pick 2 ways to find 2 deals Negotiate on Price Negotiate on Terms Do you have any other properties? Do you know anyone who has a property for sale? Find Motivate Sellers Why are you selling? What happens if you don't sell? Do quick analysis Be ethical Build relationships

For Sale By Owner

Typical Motivate Owner - Has a home that needs repair - No money to do repairs - May be underwater on loan - Behind in mortgage payments

REO Brokers

Show them that you are- Educated- Offers are realistic- Know how to flip a property 60% of foreclosures do not go to REO

New Home Buyer Workshops

Shemin deals he can't do

Rental Ads - Call

Community Reinvestment Act - CRA

Banks have to loan in low income areas. They are not meeting their quota. Direct relationship with Fannie Mae.

Code Violations - Get List

Every city has a codes - If you have fine there is an opportunity. Public records. - Send letter, phone call, text - Use oversees caller - Find pro Rehabers..

PropStream by Equimine

Bed and Breakfast Conversion

1904. b

Insurance Claim Adjusters

Connected Investors.com

Fed Tax Liens

If you put IRS on notice, I am going to buy it. Owner will become motivated 120 days to respond. If they don't IRS responds negotiate.

Title Companies

Bankruptcy Trustees

Wholesalers

Get Paid

Here is the Wholesaler process: find your new buyers Find out what they want Find the properties Run the numbers Find the owner Get 1 Day Loan Letter Negotiate the contract Get property under contract Bring to buyers Take deal to Title Co. for a simultaneous close  

Meet: Walk-through w/Appraisers

Meet: Walk-through w/Broker

Walk-through with BPO Meeting: - Bring 3 comps that match house- Point out repairs w/3 estimates- Take pictures of all

Get PAID TWICE

Get wholesale commission.Find out how buyer will make his profit.If significant, ask what they think would be a 'fair" commission for finding this property that will make them money. Ask to put a percentage commission in title that pays you when property sells.

Never sign a deal w/buyer that is not pre-approved

Work-around Bank Flipping Restrictions #1

Getting around banks restricting flipping houses: To make a larger profit, Create a corp or trust. Sell the right-to-buy a home to a private corp or trust then sell trust or corp Trusts is confidential. You can create a trust that will just own the "right" to purchase a property. Create a corporation immediately in 10 minutes.

Wholesaling Deals

Homevesters Franchisors Blackrock investments Franchise: 2,000 to 10,000 investing/month for ads. We Buy Ugly houses. Do you have any deals you don't want? Pick me out the juicy ones? Best source of deals is your competition. In every town there are 10 people doing all of the deals. You have to meet them. Best source of buyers and deals. Whatever I think I am right I am. Police who arrest crystal meth labs. Repair people - see bad homes send you leads.

RE Cash Source - Day Flip Loan - Buy it. then Sell it,

Get a proof of funds letter. Make an offer with cash. Put it under contract. 22 minutes - quick sale, flip or hold. Wholesale it to your buyer. Receive your commission. Buyers should make more than you. 3 to 5 comparative deals - 6 mo. I don't trust comps. Verify with market professional. What is it worth today? Days on market? too many days? Amount of other available properties. Distress comps retail comps Cash comps Get cost of repairs - 3 estimates for each repair Create a Power Team Title - Realtor - Insurance - Bankers - CPA buys and sells wwdtd? Ask Title Company to write the contract - 90 days. If getting no offers, rewrite the offer for less. Start again. 75 % of deals are renegotiated. Verify all information. Verify, verify, verify Here is the process: Find the property Run the numbers Find the owner Negotiate the contract find your new buyer Assign of simultaneous close Go to the bank..get your money. Bandit Signs.com - Cash offer for your house. Cash offer for your house - do not use your number Direct Mail - working no one is doing it. Make offers on listings that are expiring or expired. HIre Skip Tracer Call for rent ads...help them sell it. Wholesaling gives you a cushion. Get Notice of Defaults - Insurance Adjuster - house needs work - tell them take cash and buy at a deal. And or/assigns... Do two wholesale deals a month to make $120,000/yr. Find deals vs markets Find buyers...manage their expectations. How many have you closed Do you invest Do you have banking Maximum allowable offer Offer Less: less repair least purchase price Subtact costs Motivated sellers - Realtors - buyers - investors - bankers - title - send deals out to all - use constant contact to track all go on Craigs list - bring in a deal. In 5 years where will you be.

Biz Building Blocks

Goals - So you don't go broke making money, create a plan for the: - Short Term - Mid Term - Long Term

7 Cs

SET GOALS

Systems, Policies and Procedures

Systems policy procedures. Setup proper procedures reduce stress Build your business to sell it!!! Work on your business. Create procedures and policies. 5 -3 1 - 5 Email Response 3 - phone call 1 - Texting - used text response Call then text...faster.

Learn from everyone

Dominate Your Market Niche

Get a self-directed IRA

PropStream

Forms Buy Sell/Mortgage/Work/POA Sheets/Trusts/Quitclaim/Foreclosure Agreements Financial statements Creative Financial Analysis PreQualification Database Porperty Analysis Expenses Fixup Costs Cash Buyers Neighborhood Analysis Foreclosure, preforeclosure & Cash Buyers

Track your time

Track your Time: Columns for Tracking: Activity - Time Spent - Money Made - Enjoy - Get Someone Else Call Rent Ads - Get property under contract Track your Time

Cash Flow Mgmt.

Cash Flow statement Every Friday for: - Business, - Personal finances

Use Elite Support:

Elite Support Line. email: workshopcare@theflippingformula.com

Make Offers

99% of offers for REOs are rejected. - Get REO broker at each bank. - Setup monthly offer on that property. - Catch bank when they are motivated.

Setup Resubmit Offering System

Resubmit System - Offers may get turned down initially. Setup system to resubmit offers every month.

REO or Loss Mitigation Dept.

Contra Costa Foreclosures

Qualify Offer

Educate Seller regarding by: - Showing pictures of comps- Pictures of repairs/cost estimates - Showing carrying costs while fixing - Showing expected profit

Take over payments

RE Cash Source Loans RE Cash Source is your Strategic Funding Partner in nearly all of your real estate transactions. We provide our clients with money in several different categories of funding. They are: Transactional Funding: Transactional funding is usually a loan that lasts between one and three days. It is utilized when you have a property under contract, and have procurred a buyer as well. RE Cash Source will then provide you the funding for your purchase at the same time your buyer deliivers the funds to the title company. The fee’s for this loan program are an AMAZINGLY LOW 2% of your acqusition price with a $495 origination fee. Short Term Flips: RE Cash Source is a leading source of funds for real estate investors who are doing short to mid term rehabs. This loan is perfect for an investor who is buying a proeprty that needs minor rehab, but will take between 1 and 3 months to complete. Our 3 month rehab loan can loan up to 80% of your acquisition price. The fee’s are a very reasonable 3% per month. There is a $795 origination fee. Bridge Loans: Sometimes in order to acquire an income producing property, you must secure it with higher interest financing than normal. Our 2 year bridge loan can be an effective way to phase out of such financing, increase your cash flow and establish a long term buy and hold strategy. Our 2 year bridge loan will loan you between 50% and 70% of your acquisition price with a low fee you don’t pay until the end of your term. Equity Line: One of the most often overlooked sources of funding your future real estate deals is the equity you have in appreciable assets. Savvy real estate investors often use the equity in non owner occupied properties as a source of cash for other opportunities. The trouble is, most lenders don’t like lending on such properties without extensive due dilligence. RE Cash Source loves working with investors on these types of propertes.

22 minutes

Analyze the numbers If I wholesale a deal I must get property under contract. (RE Cashsource.com Assignment - In California, setup 1 Day Purchase. When cash buyer approves,- Buy with 1Day Loan- Send buyer and seller to title company to complete deal. All properties can be turned

Lease Options

Lease w/Option to purchase. Arrange lease w/option when you do not want to buy. - Live in for 2 years then sell, or- Sublease w/option to sell Have leasee pay for property.Helps people who don't qualify for loan to get started.

Buy House w/Credit card 0 interest/6 mo.

If you loose, make backup offer

Stay in the mix. Someone will buy that house. Resubmit.

Do not give Earnest Money!!

Avoid Earnest Money. Gain Confidence in you - Your Book - all your contracts. Share pictures of previous deals.

Sign Contract - Start Advertising

If you can't assign, you buy with RE Cash Source and then sell it the same day.

Wholesale Contracts

Wholesale Contract - Under contract contingent on good title, I am a real estate investor I buy and sell property. I may or may not have good title now. Avoid fraudulent 90% of deals with highly motivated sellers. - Investors are the best to deal with.

Negotiate Short Sales

Short Sale - Build a team Team does not get paid unless get deal. Equator is where short sales - If they owe more than property is worth.Goal - Help people in a bad situation. - Late on their mortgage. If they are not late they do not qualify for short sale.- What if it does not work? What would you do if a short sale will not work? = I will be foreclosed. Now that they know. "We have no choice. We must go for a short sale." Banks are not able to handle all of the deals. Who is on the deed? Who is on the mortgage? Must have both people to represent them. Do you care about your credit?If they care about credit, short sale is better than foreclosure. Every time you have to qualify for a loan, or applying for a job: Have you ever had a foreclosure? If they care, they will be motivated. Foreclosure - Remaining debt of loan will follow you. Credit ruined. In contrast, Banks will sign off on short sale to get rid of property.Does not effect credit as much. Are you a Loan Modification?

Walk-through w/Broker Price Offer

Broker Price Offer, BPO Agents- Show them comps- Show them cost of repairs needed- Get 3 Quotes on cost of repairs- Show them repair areas= Reducing price you will buy

One Sheet Offers

Get Opinion Show picture of property Show high mid and low return Show cost and sale opportunity Cost to repair

Fix The House

Go To Open Houses Make all of your money when you buy it.  Make net, net, net 25% - See what sellers are doing - Then beat it. - Create a color scheme that is added throughout house Create Incentives performance. Contract - Offer more We are going into relationship for a long time.  10 years.  Treat me right I will treat you better. Fix the house I will pay you more than your estimate. Manager - Pay 9% to 11% based on occupancy, cleanliness and customer service.  Without accountability there is no business. Get a personal coach to keep you accountable. Find contractors...

Get 3 Quotes on all repairs

Budget for Worse case scenario

Kitchen

Kitchen is Key - Our product gets people to cut the line. Look at competition then make yours better. Put in 24" IslandHandles, doorknobs make differenceBacksplash high endFarmers SinkGlass in cabinetssTravertine backsplashPendant lightingWall TVWash walls with ceiling lights

Living Room

Living RoomWainscoat - Cheap Trim to create traditional New England design

Get Project Mgr.

Landscaping

Curb Appeal is Real: Invest to match neighborhood

Master Bed/Bath

Picasso Paint - looks textured.- Theme color throughout house - High light with ceiling lights- Full Travertine Tile - several shower heads- Full Granite sinks- Stage with artwork- Built-in speakers

Systems Analysis

How to Sell House

Put on the MLS

Big Signs on House

Flyer the neighborhood

Websites - eBay, Trulia, zillow

High end sales - Winetasting open house

Equator - Short Sales

Stage home

Curb Appeal

Rental Properties

By the Door

Lease w/option

$1,800 Cost to replace tenant

No emergencies

Financing - Raising Seed Money

Real Estate is not real estate Real estate is Finance If I make you a full price offer will you say yes. Finance Option: Thousand dollars a month for 100 months Why do you need the cash How much do you need? What are going to do w/money If you let me pay you once a month, = no real estate commission = taxes once a month I want the deed in my name. Owners Deed. Contract for Deed - I give thousand down and thousand a month. Form of owners term.  If I walk away, how much will I loose?  Millions. Lease w/option - At some point you will get the deed.

RE Cash Source

RE Cash Source Loans RE Cash Source is your Strategic Funding Partner in nearly all of your real estate transactions. We provide our clients with money in several different categories of funding. They are: Transactional Funding: Transactional funding is usually a loan that lasts between one and three days. It is utilized when you have a property under contract, and have procurred a buyer as well. RE Cash Source will then provide you the funding for your purchase at the same time your buyer deliivers the funds to the title company. The fee’s for this loan program are an AMAZINGLY LOW 2% of your acqusition price with a $495 origination fee. Short Term Flips: RE Cash Source is a leading source of funds for real estate investors who are doing short to mid term rehabs. This loan is perfect for an investor who is buying a proeprty that needs minor rehab, but will take between 1 and 3 months to complete. Our 3 month rehab loan can loan up to 80% of your acquisition price. The fee’s are a very reasonable 3% per month. There is a $795 origination fee. Bridge Loans: Sometimes in order to acquire an income producing property, you must secure it with higher interest financing than normal. Our 2 year bridge loan can be an effective way to phase out of such financing, increase your cash flow and establish a long term buy and hold strategy. Our 2 year bridge loan will loan you between 50% and 70% of your acquisition price with a low fee you don’t pay until the end of your term. Equity Line: One of the most often overlooked sources of funding your future real estate deals is the equity you have in appreciable assets. Savvy real estate investors often use the equity in non owner occupied properties as a source of cash for other opportunities. The trouble is, most lenders don’t like lending on such properties without extensive due dilligence. RE Cash Source loves working with investors on these types of propertes.

Month Rehab Loan

Year Bridge Loan

Equity Line of Credit

Take over the loan

Hard Money Loans

Owner financing

401Ks, Life Insur., Credit Cardds,

0 Interest Loans

Low Loan to Value properties Pay monthly a 0 interest with someone who owns the problem. - Tenants pay for property - Own - With "No Recourse" loan

Lease w/option

Tools to Solve Problems - Lease/option Lock in low lease for 20 years. - Rent out for a profit. - Renter buys for you. - Manage Property Option to buy at discount 21 day contingency if you can't rent Run a test ad...see how many calls you get. Lease option locked in for me/ but You have an out each year. Renter takes care. Rentco repair - Tenant pays. 5900 Collins Ave. 50 for rent ads - I have a program to get you out of maintenance and headaches. - I need to see if qualify - What is the rent? - Build their pain - After repairs and no rent paid Not really making full amount. - What is the renter really - No loan on property. - Negotiated to clean up With an agreement every 2 years take $250.000 no tax. $500,000 for a couple. Lease w/option - value goes down you can walk away. Best for commercial property. Pay two months. Now you manage Lease then lease to someone. Separate lease, separate option. Title Lawyer - does the paperwork. Federal Tax - You have intention to live somewhere. If you haven't bought house in 3 years. you qualify for FHA first time loan.

Loan Reset

Loan reset goes to 0. For Banks who want to get rid of fraudulent loans.

Short Sales

10% are getting done. Find someone who has been successful.